Motley Fool Money Netflix and Tesla Play With Pricing
Jul 21, 2023
Ron Gross and Andy Cross, senior analysts at Motley Fool, delve into Netflix's surprising shift to higher-tier plans and the abandonment of its basic offering. They also explore the buzz around Johnson & Johnson's recent spin-off and discuss whether Tesla's margin concerns are overstated. Meanwhile, marketing expert David Meerman Scott shares intriguing business lessons inspired by the Grateful Dead, emphasizing community-focused strategies. Together, they unpack vital trends in travel, consumer spending, and notable stocks like Toro and Mueller Industries.
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Netflix Growth
- Netflix added 6 million new customers in Q2 but offered a weaker Q3 forecast.
- Revenue growth slowed due to the still-developing advertising business and increased subscribers in lower-paying regions.
Netflix Pricing
- Ron Gross finds Netflix getting expensive, questioning their pricing power with rising subscription costs.
- Andy Cross highlights Netflix's profitability and free cash flow as advantages for content investment.
Netflix Basic Plan Removal
- Netflix is discontinuing its lowest-cost basic plan.
- They seem to be pushing users toward the ad-supported model, according to Dylan Lewis.
